Cloudflare is one of the few companies that welcomes fights with patent trolls, even setting up Project Jango as a way of incentivizing users to help it fight such companies. Its latest legal battle was with Sable, a patent troll that sued Cloudflare in 2021 and tried to make the case that it was infringing multiple of Sable’s patents.

Catch our conversation on Cloudflare’s crusade against patent trolls!

Cloudflare immediately tapped into Project Jango, rewarding users who help it find “prior art,” or applications of the tech covered by Sable’s patents in use before Sable’s patents went into effect. Thanks in no small part to this effort, by the time the case went to trial, there was only one remaining claim against a single patent—down from the 100 claims against four patents when Sable initially sued Cloudflare.

The Challenges Cloudflare Faced

One of the biggest challenges Cloudflare faced was not the merits of the case, but explaining very technical terms to a non-technical jury, as the company explains.

To defeat Sable’s claim of infringement we needed to explain to the jury — in clear and understandable terms — why what Cloudflare does is different from what was covered by claim 25 of Sable’s remaining patent, U.S. Patent No. 7,012,919 (the ’919 patent). To do this, we enlisted the help of one of our talented Cloudflare engineers, Eric Reeves, as well as Dr. Paul Min, Senior Professor of Electrical & Systems Engineering at Washington University, an expert in the field of computer networking. Eric and Dr. Min helped us explain to the jury the multiple reasons we didn’t infringe.

While Sable tried its best to convince the jury otherwise, Cloudflare’s experts were able to clearly demonstrate how the CDN provider’s tech was a unique home-grown invention, and not a ripoff of Sable’s patent.

While Sable’s technical expert tried his hardest to convince the jury that various software and hardware components of Cloudflare’s servers constitute “line cards,” his explanations defied credibility. The simple fact is that Cloudflare’s servers do not have line cards.

Ultimately, the jury understood, returning a verdict that Cloudflare does not infringe claim 25 of the ‘919 patent.

Going Further to Invalidate Sable’s Claim

Cloudflare wasn’t happy with just winning the infringement claim. Instead,the company wanted to go further and invalidate the claim altogether, despite the challenge in doing so.

Proving invalidity to a jury is hard. The burden on the defendant is high: Cloudflare needed to prove by clear and convincing evidence that claim 25 is invalid. And, proving it by describing how the claim is obvious in light of the prior art is complicated.

To do this, we again relied on our technical expert, Dr. Min, to explain how two prior art references, U.S. Patent No. 6,584,071 (Kodialam) and U.S. Patent No. 6,680,933 (Cheeseman) together render claim 25 of the ’919 patent obvious. Kodialam and Cheeseman are patents from Nortel Networks and Lucent relating to router technology developed in the late 1990s. Both are prior art to the ’919 patent (i.e., they pre-date the priority date of the ’919 patent), and when considered together by a person skilled in the area of computer engineering and computer networking technology, they rendered obvious the so-called invention of claim 25.

Ultimately, Cloudfare’s efforts paid off, with a jury agreeing that Sable’s claim was invalid.

The Repercussions for Sable

The case ended up being a total loss for Sable on all counts. Throughout the case, it was apparent that Sable was motivated strictly by trying to achieve an easy payday, which it was denied. Even more fitting, Sable ended up paying Cloudflare, as well as giving up any possibility of weaponizing its patents again.

In the end, Sable agreed to pay Cloudflare $225,000, grant Cloudflare a royalty-free license to its entire patent portfolio, and to dedicate its patents to the public, ensuring that Sable can never again assert them against another company.

Let’s repeat that first part, just to make sure everyone understands:

Sable, the patent troll that sued Cloudflare back in March 2021 asserting around 100 claims across four patents, in the end wound up paying Cloudflare. While this $225,000 can’t fully compensate us for the time, energy and frustration of having to deal with this litigation for nearly three years, it does help to even the score a bit. And we hope that it sends an important message to patent trolls everywhere to beware before taking on Cloudflare.

Why Cloudflare Deserves An Award

Patent trolls are the bane of the tech industry’s existence. To be clear, there is nothing wrong with a company aggressively defending its intellectual property when it puts in the time and money to develop a technology, or purchases a tech and its patents, and goes on to use them.

In the case of patent trolls, however, these are companies that file vague, overly-broad patents to cover any number of concepts that may one day be used by some company. Or a patent troll will purchase a promising patent from an inventor. In both cases, however, the patent troll has no intention of developing any technology that may be covered by the patent. Their sole goal is to wait for another company to develop such tech and then shake them down for money.

Patent trolls are the worst of the worst, artificially inflating the cost of developing tech with their greedy shakedowns and lawsuits.

Cloudflare, with its long history of relentlessly going after paten trolls, deserves an award.

Amit Zavery, Google Cloud GM/VP and Head of Platform, and Gloud EMEA President Tara Brady penned a blog post outlining Google’s argument. The two executives make the case that the old ways of locking customers in to a single vendor—which may have worked in the pre-cloud software industry—are no longer viable or beneficial in an era defined by cloud computing. In spite of that, the execs point out multiple instances where Microsoft has continued the old ways.

Don’t miss our talk on Google’s EU complaint against Microsoft!”

For years, in the productivity software space, Microsoft has locked customers into Teams, even when they preferred other providers. Now, the company is running the same playbook to push companies to Azure, its cloud platform. Microsoft’s licensing terms restrict European customers from moving their current Microsoft workloads to competitors’ clouds – despite there being no technical barriers to doing so – or impose what Microsoft admits is a striking 400% price markup.

To make matters worse, not only is Microsoft the only major cloud provider to still be trying to leverage vendor lock-in, but its attempts to do so are having significant negative effects, most notably in the realm of cybersecurity.

Microsoft is the only cloud provider to use these tactics, which have significantly harmed European companies and governments. Not only have they cost European businesses at least €1 billion a year, but also they have led to adverse downstream effects, including waste of tax funds, stifled competition, restrictions on distributors and channel partners, and heightened risk for organizations exposed to Microsoft’s “inadequate” security culture.

The execs specifically call out the roll Windows Server plays in Microsoft’s efforts to lock customer in to its Azure platform. Windows Server is a staple for much of the industry, and companies have long used their Windows Server licenses on the hardware of their choice. As cloud computing began to eclipse on-premise workflows, Microsoft saw a serious threat to its Windows Server business and reacted accordingly.

However, as cloud computing took off and promised to bring new benefits to European businesses, customers wanted to move their previously purchased licenses to other cloud providers, and in some cases to multiple clouds, to provide additional resiliency and security. Initially, Microsoft allowed them to do this. But as Azure faced more competition, Microsoft introduced new rules that severely limited customer choice.

One of the most significant restrictions occurred in 2019, when Microsoft adopted new licensing terms that imposed extreme financial penalties on businesses wanting to use Windows Server software on Azure’s closest competitors, such as Google Cloud and AWS. Microsoft’s own statements indicate that customers who want to move their workloads to these competitors would need to pay up to five times more. And for those who choose to keep running Windows Server on competitors’ cloud platforms (despite the cost difference), Microsoft introduced additional obstacles over the last few years, such as limiting security patches and creating other interoperability barriers.

The executives go on to highlight examples within the EU, including studies that show Microsoft’s practices lead to higher prices, reduced competition, and taxpayer waste, before highlighting how Google’s approach is different.

Google Cloud’s approach is different. We promote fair and transparent licensing for our customers. We pioneered a multi-cloud infrastructure service and a multi-cloud data warehouse, enabling workloads to run across multiple clouds. And we were the first company to provide digital sovereignty solutions for European governments and to waive exit fees for customers wishing to switch cloud providers.

Our point is a simple one: Restrictive cloud licensing practices hurt companies and impede European competitiveness. We look forward to continuing this discussion on how to keep the cloud market fair and open for European businesses and governments.

Google Is Trying to Revive a Settled Complaint

In some ways, Google is trying to revive a complaint that had already been made and settled—albeit by a different organization—without Google’s involvement.

In late 2022, the Cloud Infrastructure Service Providers in Europe (CISPE) filed a similar complaint against Microsoft, saying the company was “irreparably damaging” the EU cloud industry. In the complaint, CISPE made many of the same arguments as Google, saying Microsoft was unfairly locking customers in to its own platforms and abusing its dominance in some markets to prop up its cloud business.

“Leveraging its dominance in productivity software, Microsoft restricts choice and inflates costs as European customers look to move to the cloud, thus distorting Europe’s digital economy,” Francisco Mingorance, Secretary General of CISPE, said at the time. “DG Comp must act swiftly to open a formal investigation with a statement of objections against Microsoft’s software licence abuses to defend the robust cloud ecosystem Europe needs and deserves.”

In July 2024, Microsoft and CISPE struck a deal that settled the claim, giving EU cloud providers the ability to offer Microsoft and Azure services that previously were only available to direct Microsoft customers.

“This is a significant victory for European cloud providers,” said Secretary General Mingorance. “CISPE has given Microsoft the benefit of the doubt and believes that this agreement will provide a level playing field for European cloud infrastructure service providers and their customers. Microsoft has nine-months to make good on its commitment by offering solutions that allow fair licensing terms for its productivity software European cloud infrastructures.

“To ensure the continued primacy of European members, the CISPE General Assembly has also instructed the Board to revise the governance of the association to ensure that European businesses and SMEs remain in the driving seat for CISPE campaigns should Microsoft or other global hyperscalers ask to become members. Proposed modifications will be presented ahead of the next General Assembly on 18th October 2024.”

Interestingly, the terms stipulate that neither Google Cloud nor AWS can benefit from the agreement, and AWS was excluded from the negotiations altogether. Needless to say, Google was not happy with the deal, and Zavery expressed his company’s dismay shortly after.

MSFT playbook of paying off complainants rather than address their complaints shouldn’t fool anyone,” Zavery wrote on X. “The deal doesn’t apply to all CISPE members. CISPE admits to a payoff. EU cloud competitors become Azure customers. CISPE members under gag order, can’t file complaints anymore.”

Google clearly believes that Microsoft’s deal with CISPE does little to address the company’s underlying behavior or the harm such behavior allegedly causes the cloud industry. The fact that Google doesn’t benefit from the CISPE deal no doubt adds to the company’s motivation in filing its own complaint.

Microsoft has worked hard in recent years to separate itself from the rest of the tech industry, portraying itself as a company that is more open to working with regulators and promoting fair practices in the industry. Despite those efforts, Google clearly believes Microsoft has not changed enough and is trying to force its hand with the EU complaint.

Microsoft has released its Windows App on most major platforms—Windows, macOS, iOS, iPadOS, Android, and web browsers—giving users a central way to connect to Windows.

Windows App is designed to give users a unified way to connect to and manage Windows in the cloud, enabling productivity on-the-go.

With Windows App, you can enjoy a unified experience that makes it simple for people to connect to the Windows experience they know and love from any device. Enhance productivity with features such as customizable home screens, multi-monitor support, and USB redirection. Windows App also offers advanced security features, including multifactor authentication, to ensure a seamless and robust connection and enable efficient work from any location, at any time.

Windows App provides a consistent, reliable experience for all devices, enabling secure access from any location. Whether you need to connect to Windows 365, Azure Virtual Desktop, Remote Desktop, Remote Desktop Services, or Microsoft Dev Box, Windows App simplifies the process, allowing you to manage and utilize these resources from a single, intuitive app. Whether you are an IT administrator or an end user, Windows App provides immense value. IT admins benefit from enhanced security and streamlined management, while end users can tailor their experience to fit their personal workflows.

Interestingly, although Microsoft claims Windows App is available on all platforms, Linux is notably absent from the list, and Android is still in public preview. The absence of Linux is particularly interesting, given how popular the OS is with system admins and developers, not to mention its use within Microsoft. Nonetheless, Linux users should be able to use the service via web browser.

Oracle Database@Azure is a service that allows businesses to run their Oracle Cloud Infrastructure (OCI) services in Microsoft Azure datacenters. The option gives organizations the ability to combine the two companies’ services in a low-latency, high-performance environment.

The latest enhanced include the following features, per a Microsoft Azure blog post.

• Microsoft Fabric plus Oracle Database@Azure integration to fuel customer data and AI innovations.
• Integration with Microsoft Sentinel and compliance certifications to provide industry-leading security and compliance for mission-critical workloads.
• Plans to expand offering to a total of 21 primary regions, each with at least two availability zones and support for Oracle’s Maximum Availability Architecture (MAA) to deliver the highest levels of availability and resilience.
• Examples from customers joining us on stage at Oracle CloudWorld this week.

Microsoft says customers are choosing Oracle Database@Azure because of the “performance, scalability, security, and reliability” it offers, with the solution becoming a popular choice for mission-critical workloads for some of the world’s largest companies.

“With the continuing threat of ransomware, companies must adapt to rebuild their critical services and systems from scratch—not just reconstitute data into an environment that is compromised. Oracle Database@Azure is the only service that meets MSCI’s Cyber DR needs from a recovery time, security isolation, recovery point and cost perspective.”—John Rogers, Chief Information Security Officer, MSCI.

Microsoft says its new Microsoft Fabric works with Oracle Database@Azure to help drive data and AI innovation.

Microsoft Fabric is an ever-evolving, AI-powered data analytics platform that empowers customers to unify and future-proof their data estate. Fabric keeps up with the trends and seamlessly integrates each new capability so businesses can spend less time integrating and managing their data estate and more time unlocking value from their data. OCI GoldenGate offers seamless support to integrate data across dozens of data sources and targets including OneLake in Microsoft Fabric, delivering enterprise-grade, real-time data to the Microsoft ecosystem. The combination of OCI GoldenGate’s continuous, low-latency data availability in Microsoft Fabric’s comprehensive data and analytics tools, like Power BI and Copilot, enables customers to connect their essential data sources—both Oracle and non-Oracle—to drive better insights and decision-making.

Microsoft and Oracle have been making significant inroads in the cloud industry. Oracle, in particular, has become a popular option for AI workloads, thanks to its more modern cloud architecture. The enhanced integration with Microsoft Azure is sure to benefit both companies moving forward.

Since Broadcom purchased VMware, the company has been aggressively increasing prices and alienating customers by canceling existing licenses in favor of subscriptions that cost orders of magnitude more. AT&T appears to have had enough and is suing Broadcom.

The telecom company outlined its complaint, and asked the court for injunctive relief.

Plaintiff AT&T Services, Inc. brings this action for breach of contract, breach of the implied covenant of good faith and fair dealing, declaratory judgment, and injunctive relief against Defendants Broadcom Inc., as successor-in-interest to VMware, Inc., and VMware, Inc.1 AT&T’s allegations are based on knowledge as to its own acts, and on information and belief as to all other matters except where expressly indicated.

Broadcom Allegedly Reneging On Contracts

AT&T goes on to describe Broadcom’s habit of canceling perpetual licenses in favor of expensive subscriptions.

Almost immediately, Broadcom began reshaping VMware’s business model from selling stand-alone perpetual software licenses to selling more expensive subscription software licenses bundled with additional products and services. As its new owner, Broadcom has every right to change VMware’s business model prospectively. What it cannot do, however, is retroactively change existing VMware contracts to match its new corporate strategy. But that is exactly what Broadcom seeks to do here.

AT&T then accuses Broadcom of trying to hold it hostage by withholding support.

Specifically, Broadcom is threatening to withhold essential support services for previously purchased VMware perpetually licensed software unless AT&T capitulates to Broadcom’s demands that AT&T purchase hundreds of millions of dollars’ worth of bundled subscription software and services, which AT&T does not want.

Not only is Broadcom contractually obligated to continue providing the software support services, but without them AT&T has no way to ensure the VMware software installed on approximately 8,600 AT&T servers that deliver services to millions of AT&T customers worldwide will continue to operate.

AT&T goes on to say that many of the services being run by VMware instances are critical to the US government, as well as public safety organizations, such as emergency personnel, firefighters, paramedics, and police officers.

AT&T acknowledges that its original support period expires on September 8, 2024. However, the two parties signed an amendment to their agreement in 2022, one which gives AT&T the option to renew and extend support for up to two additional years.

Although AT&T has already advised Broadcom that it is exercising its option to renew support services for at least another year, Broadcom is refusing to honor AT&T’s renewal.

Instead, Broadcom states it will only continue to provide support services if AT&T agrees to purchase scores of subscription services and software that: (1) AT&T does not want or need; (2) would impose significant additional contractual and technological obligations on AT&T; (3) would require AT&T to invest potentially millions to develop its network to accommodate the new software; (4) may violate certain rights of first refusal that AT&T has granted to third-parties; and (5) would cost AT&T tens of millions more than the price of the support services alone.

AT&T’s Is An Increasingly Common Story

The telecom company goes on to say that many critics and customers predicted that Broadcom would engage in this behavior when its purchase of VMware was first announced. The company is correct, with many at the time expressing concern over what the future might hold.

Unfortunately, those fears have been realized, with organizations around the world having their own horror stories related to their interactions with Broadcom. In fact, EU cloud organization CISPE has appealed to regulators, saying “public sector bodies, large European businesses, SMEs and start-ups are all threatened by egregious and unwarranted new contract terms and price increases.” The organization went on to warn that Broadcom’s actions would decimate the EU cloud.

“As well as inflicting financial damage on the European digital economy, these actions will decimate Europe’s independent cloud infrastructure sector and further reduce the diversity of choice for customers,” said Francisco Mingorance, secretary general of CISPE. “Dominant software providers, in any sector from productivity software to virtualisation, must not be allowed to wield life or death power over Europe’s digital ecosystems.”

Some customers have had enough, and are increasingly looking at competitors’ offerings. In fact, evidence suggests Broadcom’s tactics recently cost it a 24,000 license customer.

With large customers like AT&T willing to go through the expense of a lawsuit over Broadcom’s actions, it’s a safe bet the VMware owner’s troubles are just beginning.

The Origins of the 83% Figure

The 83% figure has gained traction, being cited by major industry players and analysts as a sign of a potential shift in the cloud computing landscape. Broadcom’s leadership prominently displayed this statistic at the recent VMware Explore event in Las Vegas, using it as evidence to promote their virtualization software to customers frustrated with the costs and complexities of public cloud services. Even Michael Dell, CEO of Dell Technologies, weighed in on the conversation, tweeting that the statistic was “not surprising.”

Not surprising:

83% of enterprises plan to move workloads back to private cloud from public cloud. Source: Barclays CIO Survey pic.twitter.com/CEwzLGkkWX

— Michael Dell (@MichaelDell) August 27, 2024

But what does this number really represent? According to the Barclays survey, it indicates that 83% of enterprises are moving at least one workload from the public cloud back to their on-premises or private cloud infrastructure. At first glance, this seems to suggest a mass exodus from public clouds like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud. But as with many statistics, the reality is far more nuanced.

The Misleading Nature of the Statistic

“The 83% figure is both accurate and misleading,” says Larry Walsh, CEO and Chief Analyst of Channelnomics. “It’s true in the sense that a significant number of enterprises are exploring or initiating some form of repatriation. However, it doesn’t capture the full picture of what’s really happening in the cloud space.”

One of the key issues with this statistic is that it represents companies, not workloads. “If 83 out of 100 companies each move a single workload from the cloud to on-premises, that’s still 83%,” Walsh explains. “But it doesn’t mean that 83% of all workloads are being repatriated. Many of these companies are likely moving small, non-critical workloads while keeping the vast majority of their operations in the cloud.”

Breaking Down the Numbers

To understand why the 83% figure is misleading, it’s important to delve deeper into what’s actually happening. “The statistic doesn’t distinguish between the types of workloads being repatriated,” says Andre Marsiglia, a constitutional lawyer and freedom of expression expert who also has a background in technology law. “Are these mission-critical applications or smaller, less significant workloads? The distinction is crucial.”

Moreover, the repatriation process is not a straightforward return to on-premises infrastructure. Many enterprises are opting for a hybrid cloud approach, where some workloads are moved to private clouds or co-located data centers, while others remain in public clouds. This hybrid strategy allows companies to maintain flexibility, optimize costs, and manage their data more effectively.

“It’s not a binary choice between public cloud and on-premises,” says Marsiglia. “Enterprises are looking for the best of both worlds. They want the scalability and convenience of the public cloud for certain workloads, and the control and cost predictability of on-premises or private clouds for others.”

The Role of AI and Cost Management

Another factor driving the conversation around repatriation is the rise of artificial intelligence (AI) and the associated costs of running AI workloads in public clouds. “AI is incredibly processing-intensive,” says Walsh. “While public clouds can handle these workloads, the costs can be prohibitive for some enterprises, leading them to consider moving these workloads back to on-premises infrastructure where they can manage the resources more effectively.”

This focus on AI has led some analysts, including those at IDC, to predict an increase in hardware infrastructure sales driven by AI deployments. “The belief is that enterprises will build their AI systems locally rather than rely on hyperscalers, which would drive growth in on-premises infrastructure,” says Walsh. “But again, this doesn’t mean that all workloads are leaving the cloud—just that certain high-cost, high-performance workloads might be.”

The Bigger Picture

While the 83% statistic has been widely circulated, it’s important to view it in the context of broader trends in cloud computing. Public cloud spending continues to grow each quarter, indicating that despite some repatriation, the overall reliance on hyperscalers remains strong.

“Cloud repatriation is a real trend, but it’s not the mass exodus that some are making it out to be,” says Michael Dell. “The reality is that enterprises are becoming more sophisticated in how they use cloud resources. They’re optimizing their workloads across different environments to get the best performance and cost outcomes.”

In the end, the 83% figure should be seen as an indicator of a broader conversation happening in the industry. “It’s about exploring options, not abandoning the cloud,” says Marsiglia. “Enterprises are asking themselves where they can get the most value, and for some workloads, that might mean moving out of the public cloud. But for many others, the cloud remains the best option.”

Enterprises Becoming More Strategic

The 83% public cloud repatriation statistic, while eye-catching, is highly misleading when taken at face value. It represents a complex and nuanced trend where enterprises are not necessarily fleeing the public cloud but are instead becoming more strategic in their use of cloud resources. As the cloud landscape continues to evolve, it’s crucial to look beyond the headlines and understand the full context of the data. Only then can businesses make informed decisions about their infrastructure strategies.

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Colo cost: $83/month, /30 IP, 1Gb, 32TB bw/m.

Top tier DC: https://t.co/Pgp3WgygqG pic.twitter.com/NbVIV4bXnb

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The Echo Show 8 Photos Edition doubled as a digital picture frame, giving users the ability to display their photos indefinitely, as long as they were subscribed to the PhotoPlus service. Unfortunately, Amazon is canceling those subscriptions, and effectively killing the only real reason to buy the Echo Show 8 Photos Edition over the standard Echo Show 8.

The company announced the change in an email to subscribers:

Dear PhotoPlus customers,

We’re writing to inform you that starting on 09/23/2024, we will end support for the PhotoPlus subscription. PhotPlus makes photos the primary home screen content you see on your Echo Show 8 and includes 2 GB of storage with Amazon Photos.

We will automatically cancel your PhotosPlus subscription on 09/12/2024 — you do not need to take any action. You can continue enjoying the benefits of PhotosPlus until 09/12/2024.

After your subscription period ends, photos will no longer be the primary home screen content on your Echo Show 8. However, you can continue to use the 25 GB of Amazon Photos storage.

To manage the content shown on your Echo Show 8 home screen, navigate to Settings > Home Content.

As the email points out, a person’s photos will no longer be the primary content displayed on the home screen. Instead, ads will be displayed after three hours.

Amazon has made no secret of the fact that it is trying to monetize its various devices and services as the company looks to cut costs. PhotoPlus evidently did not have enough subscribers to justify the costs, and the company was clearly unwilling to spend any more in an effort to boost the user base.

Apple has a long history of changing the name of its online services. It’s online cloud services began life as iTools, only to be changed to .Mac, MobileMe and, eventually, iCloud. While iCloud itself is not changing names, the account used to log into iCloud is.

According to Apple, the change will take place with the release of iOS 18 and macOS Sequoia.

With the releases of iOS 18, iPadOS 18, macOS Sequoia, and watchOS 11, Apple ID is renamed to Apple Account for a consistent sign-in experience across Apple services and devices, and relies on a user’s existing credentials.

It seems the change should have very little impact beyond a label.

According to the company, its revenue was $64.7 billion, an increase of 15% over the year-ago quarter. Net income came in at $22 billion, also an increase of 15% from the year-ago quarter. Earnings per share were $2.95, an increase of 10%.

“Our strong performance this fiscal year speaks both to our innovation and to the trust customers continue to place in Microsoft,” said Satya Nadella, chairman and chief executive officer of Microsoft. “As a platform company, we are focused on meeting the mission-critical needs of our customers across our at-scale platforms today, while also ensuring we lead the AI era.”

“We closed out our fiscal year with a solid quarter, highlighted by record bookings and Microsoft Cloud quarterly revenue of $36.8 billion, up 21% (up 22% in constant currency) year-over-year,” said Amy Hood, executive vice president and chief financial officer of Microsoft.

According to GeekWire, Microsoft told employees it plans to give a one-time cash award in addition to their annual bonus. The cash bonus is slated to be anywhere from 10% to 25% of their annual bonus.

“The senior leadership team and I want to recognize the tremendous work and impact of our people who delivered a terrific year of solid execution and world-class innovation,” wrote Chief People Officer Kathleen Hogan in a company memo.

“All Microsoft employees in levels 67 and below, including hourly and equivalents, who receive FY24 rewards will be eligible to receive a special one-time only cash award in addition to their annual rewards,” Hogan added. “This special one-time cash award will scale based on the employee’s FY24 impact.”

Hogan said the cash award is a reflection of the role employees have played in the company’s stellar quarter.

“We recognize our FY24 success is a direct result of the incredible focus, creativity, and collaboration of our people and our collective efforts as One Microsoft,” Hogan wrote. “We are grateful for your dedication to our mission so that together we can continue to empower everyone around the world.”

GeekWire says Microsoft has intentionally structured the award to give more to newer employees who have less seniority, as well as less stock options.

“For example, employees in higher levels such as 67 would receive a cash award equivalent to approximately 10% of their annual bonus, whereas employees level 61 and below would receive a cash award equivalent to approximately 25% of their annual bonus,” Hogan wrote. “As the SLT considered this award, our goal was to ensure that everyone eligible receives a meaningful amount at all levels, and thus the differences in percentage of bonus based on level.”

It’s good to see companies valuing the role employees play in their success, and Microsoft is to be commended for taking the step it has.

Microsoft acknowledged the issue early Tuesday morning in an X post:

Shortly after, Azure Support acknowledged that Azure Services is also experiencing issues:

Interestingly, Microsoft originally said more information could be found at status.cloud.microsoft before realizing the status page is also affected and unavailable.

Microsoft has had a rough couple of weeks, thanks to the CrowdStrike debacle. This latest outage is not likely to win the company any accolades.

In a significant technological crisis, a global Microsoft outage early Friday morning brought various sectors, including flights, banks, media outlets, and companies, to a standstill. The outage, linked to a faulty update from cybersecurity firm CrowdStrike, left travelers stranded at major airports like JFK and LaGuardia and disrupted operations worldwide.

It's confirmed !! Crowdstrike Issue Guys, they are working on it, in about maybe 45 mins things will be fix #csagent #crowdstrike #BSOD pic.twitter.com/0mkfRbUAF8

— Xaaavier_8613 (@Xaaavier_8613) July 19, 2024

Airports and Airlines Hit Hard

The Metropolitan Transportation Authority (MTA) advised commuters in New York that customer information systems were temporarily offline due to the technical outage. However, train and bus services continued to run. The Long Island Rail Road (LIRR) service was unaffected, but arrival information, station announcements, and platform signs were taken offline.

LaGuardia Airport faced the brunt of the disruptions, canceling 30 flights and delaying 10 others. At JFK Airport, travelers endured lengthy delays as 16 flights were canceled. Smaller airlines such as Frontier Airlines, Allegiant, and SunCountry reported outages earlier, while major carriers like American, Delta, and United acknowledged a technology issue with a third-party vendor.

Frontier Airlines was among the first to explicitly link the disruptions to a “major Microsoft technical outage.” The Federal Aviation Administration (FAA) confirmed that it was closely monitoring the situation, and several airlines requested assistance with ground stops.

Government and Industry Reactions

U.S. Secretary of Transportation Pete Buttigieg stated that the department was monitoring Frontier’s flight cancellation and delay issues, emphasizing that the government would hold airlines accountable for meeting passenger needs. Meanwhile, CrowdStrike CEO George Kurtz announced that the IT issue causing the global outage had been identified and a fix deployed. He clarified that the problem was not due to a security incident or cyberattack.

CrowdStrike’s update caused outages for millions of users of Microsoft Windows devices worldwide. The company said its engineers had undone the change but clients would need to use a workaround to download a fix to affected computers. “CrowdStrike is actively working with customers impacted by a defect found in a single content update for Windows hosts,” Kurtz posted on X.

Impact Across Various Sectors

The website DownDetector, which tracks user-reported internet outages, showed escalating disruptions in services at Visa, ADT security, Amazon, and various airlines, including American Airlines and Delta. The outage also affected news outlets, telecommunications providers, banks, and media broadcasters in Australia, the UK, Europe, and India.

In New Zealand, acting Prime Minister David Seymour stated that officials were moving quickly to understand the potential impacts of the global problem. He noted that there was no indication of malicious cyber activity. Israel’s Cyber Directorate reported that the outage affected the country’s post offices and hospitals, attributing the issue to a problem with CrowdStrike’s cybersecurity platform.

In the U.S., the FAA noted that airlines such as United, American, Delta, and Allegiant were all grounded. Travelers at Los Angeles International Airport were seen sleeping on jetway floors due to delays. In the UK, the budget airline Ryanair and train operators like TransPennine Express and Govia Thameslink Railway faced disruptions. At London’s Stansted Airport, some check-in services were completed manually, although flights continued to operate.

International Disruptions

Widespread problems were reported at Australian airports, where passengers experienced long queues due to disabled online check-in services and self-service booths. In India, thousands of passengers faced disruptions, with privately-owned IndiGo airlines announcing that the Microsoft outage impacted operations.

Amsterdam’s Schiphol Airport reported a “major impact on flights,” particularly on one of the busiest days of the year for the airport. In Germany, Berlin Airport announced delays in check-in processes, suspending flights until 10 a.m. Zurich Airport in Switzerland also suspended landings but allowed flights already in the air to land. Rome’s Leonardo da Vinci airport reported delays for some U.S.-bound flights.

Microsoft’s Response

Microsoft stated that the outage began around 6 p.m. ET on Thursday and that the company was working on rerouting impacted traffic to alternate systems to alleviate the issue more expediently. The company observed a positive trend in service availability but did not provide further details on the cause of the outage.

Broader Implications and Continuing Impact

The global outage highlights the vulnerability of critical infrastructure to technical failures, even in the absence of malicious attacks. With major airlines, banks, media outlets, and other sectors heavily reliant on cloud services, such disruptions underscore the need for robust contingency planning.

In the U.S., many 911 and non-emergency call centers weren’t working properly, according to the Alaska State Troopers. Frontier Airlines had late Thursday blamed a Microsoft technical outage for forcing it to implement a ground stoppage, leading to flight delays and cancellations.

Amsterdam Schiphol Airport—one of the continent’s biggest connecting hubs—was shut to all arrivals due to the issues, according to Eurocontrol, Europe’s air-traffic-control agency. KLM Royal Dutch Airlines said it had suspended most of its operations. London Gatwick was also experiencing issues, a spokesperson said. “We are using our backup process, but some passengers may experience delays while checking in and passing through security.”

Brandenburg Airport in Berlin halted operations until 10 a.m. local time, a spokeswoman said, and a notice on the airport’s website said a technical issue delayed check-in for passengers. Flights into five airports in Spain—including Barcelona—and arrivals into Berlin have also been limited, according to Eurocontrol.

At Australia’s busiest airport in Sydney, airline operations and terminal services were affected Friday afternoon local time, an airport spokesperson said. Qantas, the country’s biggest airline, said it was experiencing “some impacts to systems due to a global software issue that is impacting a number of other businesses.” The airline said flights were operating with some delays. A spokesperson for rival Virgin Australia said some cancellations and delays were expected.

Similar travel disruptions were reported in Turkey, Hong Kong, and India, where budget carrier SpiceJet said it had reverted to manual check-in and boarding processes. The London Stock Exchange’s news service was down. Known as RNS, the service publishes market-moving company announcements such as earnings reports and executive changes. A banner on the stock exchange website blamed a “3rd party global technical issue” but said other services operated normally.

Hospitals and Emergency Services Affected

In Britain and Germany, hospitals reported problems. Several practices within the National Health Service in England reported that the outage had hit their clinical computer system, which contains medical records and is used for scheduling. “We have no access to patient clinical records so are unable to book appointments or provide information,” Church Lane Surgery in Brighouse in Northern England said on X. The NHS did not immediately respond to requests for comment.

In northern Germany, the Schleswig-Holstein University Hospital, which has branches in Kiel and Luebeck, said it had canceled all elective surgery scheduled for Friday, though patient and emergency care were unaffected.

Media Outlets and Financial Institutions Struggle

News outlets in Australia, including ABC and Sky News, were unable to broadcast on their TV and radio channels and reported sudden shutdowns of Windows-based computers. Some news anchors broadcast live online from dark offices in front of computers showing “blue screens of death.” In South Africa, at least one major bank experienced “nationwide service disruptions” as customers reported they were unable to make payments using their bank cards at grocery stores and gas stations. The New Zealand banks ASB and Kiwibank said their services were down.

An X user posted a screenshot of an alert from CrowdStrike stating that the company was aware of “reports of crashes on Windows hosts” related to its Falcon Sensor platform. The alert was posted on a password-protected CrowdStrike site and could not be verified. CrowdStrike did not respond to a request for comment.

Moving Forward

The global outage caused by CrowdStrike’s update has emphasized the need for robust contingency planning and a reevaluation of dependencies on single points of failure within critical infrastructure. While the immediate technical issue has been addressed, the broader implications for cybersecurity, operational resilience, and global coordination remain areas of significant concern for industries and governments worldwide.

The Graviton line of chips was a first for the industry, an Arm-based chip designed for cloud computing. As Amazon points out, Arm chips are some of the most widely used chips on the planet, powering the majority of smartphones and tablets. Despite the performance and power efficiency they offer, adapting them for the cloud computing industry was a more difficult task.

The first version of Graviton was developed by Annapurna Labs, which AWS acquired in 2015. The first generation of Graviton was first deployed by AWS in 2018, and the company has continued to improve it in the years since.

With the release of Graviton4, AWS says the new chips is four times fater than Graviton1 and uses 60% “less energy for the same performance as comparable Amazon EC2 instances.” Several AWS customers, including SAP, Epic Games, and SmugMug have already been benefiting from the new chips.

AWS has been driving the industry embrace of processors designed explicitly for cloud workloads, and has been at the forefront of enabling their broad use in cloud applications as well as working with partners to make them accessible to more and more customers. With Graviton, AWS was, and is, at the forefront of this custom chip evolution. But the revolution in custom silicon for the cloud doesn’t end there. With the latest generation of AWS chips engineered for AI, Trainium and Inferentia, AWS is extending the chip development environment—the combination of hardware and supporting software—and the success that began five years ago with Graviton.

Rifi’s platform, housed in the cloud, empowers data teams to stay ahead of the curve by offering unparalleled visibility into their operations. Sanjay highlights two key features that define Rifi’s offering. Firstly, the platform helps teams manage their budgets effectively, ensuring they don’t exceed allocations for cloud services like Snowflake or BigQuery. This proactive approach to cost management saves money and fosters trust within organizations, as data flows smoothly and reliably.

Secondly, Rifi prioritizes the time of data teams, recognizing that efficiency is crucial for building trust and making informed decisions. Sanjay notes that Rifi has enabled some customers to drastically reduce escalations from data teams to their businesses, a testament to the platform’s ability to streamline operations and increase productivity.

One of Rifi’s standout success stories involves a public company with a $10 billion market cap. Within just three weeks of implementing Rifi’s solution on BigQuery, the company noticed a significant increase in failed jobs, indicating issues with data accessibility. Instead of resorting to the traditional approach of requesting more resources, Rifi’s platform enabled the company to identify the root cause of the problem quickly: certain user and query patterns consuming excessive capacity. By addressing these issues promptly, the company was able to free up nearly a quarter-million dollars worth of capacity, demonstrating the tangible impact of Rifi’s technology on the bottom line.

When asked about Rifi’s approach to innovation, Sanjay emphasizes the company’s commitment to listening to its customers. With clients spanning various industries, including public, healthcare, finance, and startups, Rifi understands the diverse needs and challenges facing data teams today. By staying attuned to customer feedback and continuously iterating on its platform, Rifi ensures that it remains at the forefront of innovation, delivering solutions that meet the dynamic demands of the modern tech landscape.

In conclusion, Rifi’s groundbreaking approach to data observability and rapid issue detection is revolutionizing the way organizations harness and leverage their data. By combining cutting-edge technology with a customer-centric approach, Rifi empowers data teams to navigate the complexities of today’s digital world with confidence and agility.

Data sovereignty is an increasingly important element in cloud computing, as governments work to ensure data for their companies and citizens is processed in accordance with their laws, rather than the laws of other jurisdictions. The EU and the UK both have laws requiring cloud providers to guarantee data sovereignty.

According to Computer Weekly, Microsoft has admitted to the Scottish Police Authority (SPA) that it cannot guarantee that data collected in the UK will remain within the country, and that data is regularly transferred overseas for processing.

“They’ve confirmed for the first time that a guarantee of sovereignty for data at rest (which is what they give) does not extend to data being processed (which is what everyone chose to assume) and does not cover support (which everyone ignored),” said Owen Sayers, a security consultant who filed the freedom of information (FOI) request that resulted in the revelation.

“The sovereignty measures committed to by Microsoft do NOT extend to support of any services – this will always be likely to result in international transfers.”

The issue is made worse by the fact that the data in question is related to police operations, making it far more sensitive that data collected or processed on behalf of individual cloud users. With the FOI request, UK law enforcement can no longer claim ignorance regarding how Microsoft handles such data.

“A line has been drawn beneath the period of ‘we didn’t know’ and anyone using this technology now is knowingly breaching UK law,” he said.

In a statement to Computer Weekly, Microsoft said it previously worked with UK police forces on the issues.

“Microsoft has strong data protection and data residency commitments for Azure, which hosts Axon’s Digital Evidence Sharing Capability,” said a Microsoft spokesperson. “We have not made any contractual commitments that change how Azure services already run. We have worked with Police Scotland to clarify how Azure operates to help them determine that they can use DESC on Azure in compliance with the obligations for law enforcement set out under Part 3 of the Data Protection Act 2018.”

It remains to be seen if there will be additional fallout from the FOI revelation, or if other jurisdictions will follow up with their own investigations. Either way, the situation reveals the challenges that exist with cloud computing and maintain data sovereignty and data privacy.

OpenAI has a close working relationship with Microsoft, who is also its biggest investor. The company’s tech powers Microsoft Copilot and Bing’s AI search capabilities. OpenAI’s models also feature prominently in Microsoft’s Azure AI platform.

The choice to tap Oracle for additional capacity is an interesting one, and a testament to the performance and power of Oracle Cloud Infrastructure (OCI).

OCI’s leading AI infrastructure is advancing AI innovation. OpenAI will join thousands of AI innovators across industries worldwide that run their AI workloads on OCI AI infrastructure. Adept, Modal, MosaicML, NVIDIA, Reka, Suno, Together AI, Twelve Labs, xAI, and others use OCI Supercluster to train and inference next-generation AI models.

“We are delighted to be working with Microsoft and Oracle. OCI will extend Azure’s platform and enable OpenAI to continue to scale,” said Sam Altman, Chief Executive Officer, OpenAI.

“The race to build the world’s greatest large language model is on, and it is fueling unlimited demand for Oracle’s Gen2 AI infrastructure,” said Larry Ellison, Oracle Chairman and CTO. “Leaders like OpenAI are choosing OCI because it is the world’s fastest and most cost-effective AI infrastructure.”

Oracle has become an increasingly important cloud infrastructure provider. In fact, at a recent quarterly earnings report, executives said the company was struggling to keep up with the demand.

“Large new cloud infrastructure contracts signed in Q3 drove Oracle’s total Remaining Performance Obligations up 29% to over $80 billion—an all-time record,“ Oracle CEO Safra Catz said at the time. “We expect to continue receiving large contracts reserving cloud infrastructure capacity because the demand for our Gen2 AI infrastructure substantially exceeds supply—despite the fact we are opening new and expanding existing cloud datacenters very, very rapidly.

Larry Ellison has long touted Oracle Cloud’s reliability, saying it represents a major advantage over its larger rivals.

“Let me close with a note that I’m going to paraphrase from a very large telecommunications company who uses our cloud and all the other three North American clouds — Google, Amazon and Microsoft,” Ellison once said. “And the note basically said the one thing we’ve noticed about Oracle, Oracle’s cloud, is that it never ever goes down. We can’t say that about any of the other clouds. We think this is a critical differentiator.”

SysOps engineer Robin Dev took to Substack to detail the issues his company experienced when Cloudflare reached out to try to migrate the account to its Enterprise plan:

TL;DR:

We’ve been on the Cloudflare Business plan ($250/month) for years. They suddenly contacted us and asked us to either pay them $120k up front for one year of Enterprise within 24 hours or they would take down all of our domains. While this escalated up our business we had 3 sales calls with them, trying to figure out what was happening and how to reach a reasonable contract in a week. When we told them we were also in talks with Fastly, they suddenly “purged” all our domains, causing huge downtime in our core business, sleepless nights migrating away from CF, irreparable loss in customer trust and weeks of ongoing downtime in our internal systems.

Throughout the process, Cloudflare sent emails to Dev’s company that conflicted with the action Cloudflare was taking. For example, some emails seemed to indicate a monthly plan was possible, even though Cloudflare was demanding an entire year’s payment upfront. Similarly, Cloudflare sent an email when it suspended the company’s account saying “this account suspension does not impact, disable, or remove your current services.” In reality, nothing could be further from the truth.

Cloudflare had suddenly deleted all of our domains. All of our DNS records, caching setup, rate limits, whitelists, gone. Our public website, our incoming emails (including support emails from our customers) and our internal infrastructure, our authentication configuration on Cloudflare Access, down.

The email says “this […] does not impact current services”, so we frantically wrote them a support ticket but got no response. So we called in our SysOps team and started migrating our main site to Fastly. We had the basics after a few hours, but even then, a “NS” DNS entry change apparently takes a pretty arbitrary time to propagate everywhere, from 1h to 48 hours. We’re still recovering from the aftermath.

As Dev points out, much of the issue comes from Cloudflare’s opaque terms, making it almost impossible to predict if or when Cloudflare will take such action.

Cloudflare has absolutely no information on when they will force you into custom billing, but when they start “urgently” needing to talk to you you’re probably not going to get out until you have a juicy custom contract with them. There’s a reason why they have no public information anywhere on traffic limits or Enterprise pricing. Their Sales team will use anything (like having multiple domains) as fuel to force your whole account to Enterprise , no matter if it is fixable in a simple way.

Popular YouTube and developer ThePrimeagen theorizes that Cloudflare’s sales team is engaging in this behavior in part because the company’s CEO called out the sales team for under-performing.

Although we’ve won a third of the Fortune 500 customers, if we’re honest with ourselves, we saw a lot of our success with our enterprise customers because our products were so good and solved real problems that every big company faces. That allowed many on our sales team to succeed largely by just taking orders. When the fish are jumping right in the boat, you don’t need to be a very good fisherman. But at the risk of mixing watering metaphors, as the tide goes out, you get a clear view who’s not wearing shorts.

The macroeconomic environment has gotten harder, and we’re seeing that some on our team aren’t dressed for work. Digging in with Marc, we’ve identified more than 100 people on our sales team who have consistently missed expectations. Simply put, a significant percentage of our sales force has been repeatedly underperforming based on measurable performance targets and critical KPIs. That’s obviously a problem.

As a result, the sales team may be engaging in actions that can only be described as shakedowns in an effort to save their jobs.

According to Reuters, AWS is looking to either expand its existing facilities in Milan or build on a new site. The investment will help support the company’s cloud presence in Europe.

Much of AWS’ increased investments in Europe are being driven by the company’s commitment to data sovereignty, promising to store data for EU organizations and companies within the bloc. The issue has been a growing source of concern in recent years, as EU lawmakers have grown wary of data being sent to the US where it could be vulnerable to US intelligence agencies.

The company recently announced a major expansion in Spain as well, although Reuters reports that an expansion in Italy may not be as large as that 15.7 euros deal.

The EU’s strict privacy laws set limits on how and when companies can transfer data to the US. As a result, US-based cloud companies must provide a way to handle EU customer data within the bloc. AWS has made clear its long-term commitment to its AWS European Sovereign Cloud.

From day one, AWS has believed it is essential that our customers have control over their data, and choices for how they secure and manage that data in the cloud. AWS gives customers the flexibility to choose how and where they want to run their workloads, including a proven track record of innovation to support specialised workloads around the world. We help customers meet stringent security, sovereignty, and privacy requirements in our existing sovereign-by-design AWS Regions.

The company says its investment will also help launch its first AWS Region in Brandenburg, Germany by the end of 2025. The investment is expected to contribute €17.2 billion to Germany’s economy through 2040, and support roughly 2,800 jobs in German businesses per year.

“This investment reinforces our commitment to offer customers the most advanced set of sovereignty controls, privacy safeguards, and security features available in the cloud. We’re investing heavily in new local talent and infrastructure, which will help provide the operational sovereignty our customers require,” said Max Peterson, Vice President of Sovereign Cloud at AWS. “This is an exciting milestone, and we’re looking forward to the ways that our customers and partners across Europe will drive further innovation with the AWS European Sovereign Cloud.”

“High performing, reliable, and secure infrastructure is the most important prerequisite for an increasingly digitalised economy and society. Brandenburg is making progress here. In recent years, we have set on a course to invest in modern and sustainable data centre infrastructure in our state, strengthening Brandenburg as a business location,” said Prof. Dr. Jörg Steinbach, Brandenburg’s Minister of Economic Affairs, Labour and Energy. “State-of-the-art data centres for secure cloud computing are the basis for a strong digital economy. I am pleased Amazon Web Services (AWS) has chosen Brandenburg for a long-term investment in its cloud computing infrastructure for the AWS European Sovereign Cloud.”

After almost 15 combined years at AWS, I am going to be moving on. It has been a true privilege to help lead this business from pre-revenue to $100B annualized revenue. I’m humbled by the many customers who have said they wouldn’t be what they are without AWS, thankful to our…

— Adam Selipsky (@aselipsky) May 14, 2024

A Legacy of Leadership and Innovation

Adam Selipsky, who rejoined AWS as CEO after a successful stint at Tableau, has been instrumental in driving the growth and innovation of the cloud unit. Under his leadership, AWS achieved a remarkable $100 billion revenue run rate, solidifying its position as the mainstay of Amazon’s cash flow. In a heartfelt letter to staff and shareholders, Amazon CEO Andy Jassy praised Selipsky’s contributions. “Adam leaves AWS in a strong position, having reached a $100 billion annual revenue run rate this past quarter, with YoY revenue accelerating again,” Jassy wrote. “I’m deeply appreciative of Adam’s leadership during this time, and for the entire team’s dedication to deliver for customers and the business.”

Selipsky’s departure follows a dynamic three-year tenure during which AWS navigated the complexities of the COVID-19 pandemic. Despite the challenges, the division thrived, making strategic decisions to help customers optimize their spending and launching several impactful generative AI services, such as Amazon Bedrock and Amazon Q. “Leading this amazing team and the AWS business has been a privilege,” Selipsky noted in his farewell message. “I am proud of all we’ve accomplished, going from a start-up to where we are today.”

The Rise of Matt Garman

Matt Garman, who will succeed Selipsky, brings a wealth of experience and a deep understanding of AWS’s operations. Having joined Amazon as an MBA intern in 2005, Garman has held numerous positions across the company, from product management to leading worldwide sales, marketing, support, and professional services for AWS. His journey within Amazon is a testament to his adaptability and leadership skills.

“Matt has an unusually strong set of skills and experiences for his new role,” Jassy wrote. “He’s very customer-focused, a terrific product leader, inventive, a clever problem-solver, and has high standards and a meaningful bias for action.” Garman’s ascent to CEO reflects Amazon’s commitment to internal development and continuity. His appointment ensures that the cloud unit remains at the forefront of innovation and customer service.

Strategic Vision and Future Prospects

Garman’s appointment comes at a critical juncture for AWS. The cloud unit not only supports Amazon’s other ventures in e-commerce, healthcare, and logistics but also serves as a leader in providing infrastructure for large language models and AI. As Amazon continues to expand its footprint in the generative AI market, Garman’s experience in both product development and sales will be invaluable.

In his message to the AWS team, Garman expressed optimism about the future. “I am more optimistic than I have ever been for the potential for innovation and growth ahead of us, and I look forward to helping us move faster, invent more, and operate as one team to help our customers,” he said. “For me, AWS is much more than just a business. We are a team of missionaries working passionately to help make our customers’ lives and businesses better every day.”

Navigating the Pandemic and Beyond

Selipsky took over AWS in the midst of the COVID-19 pandemic, a period marked by unprecedented challenges and rapid changes. Under his direction, AWS made strategic long-term decisions to help customers become more efficient in their spend, even if it meant less short-term revenue for AWS. This customer-centric approach has been a hallmark of AWS’s strategy, reinforcing its reputation as a reliable partner for businesses navigating digital transformation.

“Adam took over at a time of great uncertainty,” noted Jassy. “Under his leadership, the team made the right long-term decisions to help customers become more efficient in their spend, even if it meant less short-term revenue for AWS. Throughout, the team continued to invent and release new services at a rapid clip.”

Innovation at the Core

During Selipsky’s tenure, AWS continued to innovate at a breakneck pace, introducing several impactful services that have set new standards in the industry. One of the notable achievements was the launch of Amazon Bedrock, a platform designed to help businesses build and deploy AI models efficiently. Another significant introduction was Amazon Q, a service aimed at simplifying the integration of AI into everyday business operations.

“We’ve always focused on helping our customers be more successful,” Selipsky remarked in an internal memo. “By continually innovating and launching new services, we’ve enabled businesses of all sizes to leverage the power of the cloud and AI to drive their own success.”

Preparing for the Future

As AWS looks to the future, Garman’s leadership is expected to bring a renewed focus on customer experience and product innovation. His extensive background in product management and his recent experience leading global sales and marketing efforts position him uniquely to drive AWS forward.

“Matt knows our customers and business as well as anybody in the world,” Jassy emphasized. “His senior leadership experience on both the product and demand generation sides will be invaluable as we continue to invent our future.”

Garman, in his message to the team, highlighted his commitment to maintaining AWS’s trajectory of growth and innovation. “Over the last 18 years, I have been fortunate enough to get to work on many different aspects of the AWS business,” Garman stated. “But one constant has been the world-class talent and the unwavering customer obsession of the people I have gotten to work with. I’m excited to get started and help us move faster, invent more, and operate as one team to help our customers.”

Wow! Quite the change coming for @awscloud. I thought @aselipsky brought what AWS needed for the next phase. Matt Garman will bring a different vibe more toward @ajassy's style.

Amazon Web Services CEO Adam Selipsky to step down https://t.co/3zBA5nhJXX#CIO #cloud $AMZN

— Tim Crawford (@tcrawford) May 14, 2024

Broader Implications for Amazon

The leadership transition at AWS is not just a significant event for the cloud unit; it has broader implications for Amazon as a whole. AWS is a crucial component of Amazon’s overall strategy, contributing significantly to the company’s revenue and profitability. As the primary driver of Amazon’s cash flow, the continued success of AWS is vital to funding Amazon’s diverse ventures and innovations across various sectors.

Amazon’s investment in cloud technology has positioned it as a leader in the industry, with AWS providing the backbone for many of the world’s most prominent digital services. The division’s continued growth and innovation under Garman will be closely watched by competitors and customers alike. As AWS continues to push the boundaries of what cloud technology can achieve, it will play a critical role in shaping the future of digital infrastructure and AI development.

The Future of Cloud Computing

The future of AWS, under Garman’s leadership, promises to be exciting. With a strong foundation built by Selipsky and a visionary leader in Garman, AWS is well-positioned to continue leading the cloud computing market. The division is expected to further its advancements in AI, machine learning, and other cutting-edge technologies.

“AWS has always been about pushing the envelope,” Garman said. “From our early days as a start-up to becoming a key player in the tech industry, we’ve always strived to be at the forefront of innovation. I look forward to continuing this tradition and helping our customers achieve their goals.”

As AWS continues to evolve, its impact on the tech industry and the broader economy will be profound. The division’s strategic investments, such as the recent $11 billion commitment in Indiana, underscore its long-term vision and commitment to growth. These investments are expected to create at least 1,000 jobs and support new workforce development training programs, highlighting AWS’s role in driving economic development alongside technological innovation.

Conclusion

As Adam Selipsky steps down and Matt Garman steps up, AWS is poised for a new chapter of growth and innovation. With a strong foundation built by Selipsky and a visionary leader in Garman, AWS is well-positioned to continue leading the cloud computing market and driving forward the next wave of technological advancements. The seamless transition in leadership ensures that AWS will maintain its momentum and continue to deliver exceptional value to its customers and stakeholders.

The cloud computing giant’s next steps will be closely watched, as Garman takes the helm with a blend of deep institutional knowledge and a forward-thinking vision. The world will be eager to see how AWS continues to shape the future of technology and what new heights it can achieve under its new leadership.

UniSuper began experiencing issues on Thursday, May 2, with members unable to access many of the company’s services. The outage continued for several days, and is still causing problems as of the time of writing. The cause of the outage is the most interesting fact, however, with Google Cloud admitting that “an isolated, one-of-a-kind occurrence’ caused UniSuper’s entire private cloud subscription to be canceled.

“This is an isolated, ‘one-of-a-kind occurrence’ that has never before occurred with any of Google Cloud’s clients globally,” said a joint statement from UniSuper CEO Peter Chun and Google Cloud CEO Thomas Kurian. “This should not have happened. Google Cloud has identified the events that led to this disruption and taken measures to ensure this does not happen again.”

UniSuper maintained its data in two geographies, specifically to protect against outages. Unfortunately, when Google Cloud canceled the company’s subscription, it deleted UniSuper’s data in both locations.

Restoring UniSuper’s Private Cloud instance has called for an incredible amount of focus, effort, and partnership between our teams to enable an extensive recovery of all the core systems. The dedication and collaboration between UniSuper and Google Cloud has led to an extensive recovery of our Private Cloud which includes hundreds of virtual machines, databases and applications.

The incident is not a good look for Google Cloud and raises serious questions about how the issue was able to happen in the first place. Kurian’s response that it was a “one-of-a-kind occurrence” is not reassuring, since this scenario happening even once is one too many times.

While UniSuper has assured its members that their accounts and funds are safe, not being able to access those accounts for the better part of a week is a worst-case scenario for the superannuation fund, a scenario of Google’s creation.

Interestingly, and not unexpectedly, UniSuper has not committed to remaining with Google Cloud following this episode. In response to a FAQ on its site about whether it would continue using Google after the incident, UniSuper had this to say:

UniSuper takes our responsibility to provide reliable services to our members extremely seriously. Our focus is on getting systems back online swiftly, safely and securely.

We are concurrently working closely with Google Cloud on finalising a full root cause analysis. Google Cloud has confirmed that this was an unprecedented, isolated occurrence, and that measures have been taken to ensure this issue does not happen again. We will assess this incident and ensure we are best positioned to deliver services for our members.